5 ways to make the loan process easier on yourself
There are numerous reason that you could be applying for a loan, and no matter what kind of loan it is you are trying to get, be it a car loan, personal loan, business loan, etc, it can be a stressful time. To help make the process easier we put together a list of way as to how you can make going through the loan process easier.
Do your research
Before settling on a loan, be sure to do your research and shop around for a lender. There are many different types of loans out there, all with their own characteristics, so you need to be sure to find the one that fits your needs best. Once you have narrowed down which type of loan you want, check around at different lenders to find the best interest rates and terms. Not all loans are created equal, so it is best to know as much as you can before you commit to one.
Get your documentation together
Organization is key. When applying for your loan, be sure to have all your documentation together ahead of time, that way you can streamline the process as much as possible. Having your personal and financial documents in order will allow your lender to process your application quicker, and gives them a good over view of you as an applicant.
Here is some of the documentation you should compile:
- Personal identification
- Residence history
- Employment history, proof of employment, and paystubs
- Bank statements
- Documents detailing additional monthly debt and other outstanding debt
Consult/bring a friend
Even if you have done your research, gotten all your documentation together, and feel confident in the process, getting a loan can still be overwhelming. To help ease some of the nerves and help to make sure that you are getting the best loan possible, consult with a friend or family member that has been through the process before. Having a second set of ears and eyes can help ensure that you will get a fair offer with rates that fit your budget. They can also act as a good sounding board ensuring that you stay practical in what you are looking for.
Be honest on your application
When filling out your loan application is it best to be completely honest. Failure to do so could lead to many more headaches down the road. Your lender will see you as untrustworthily if they catch anything dishonest, and even if they do not catch on, you can see negative repercussions. If you overstate your current financials in hopes of a bigger loans, you may find yourself having a hard time making payments on your loan, digging yourself further into debt and damaging your credit score.
When going into the loan process, it’ll be best if you are honest and practical with yourself about your loan. If you know you have a less than stellar credit history, do not assume that you will get the best rates on the market. Going into the process, set a budget for your loan and stick to it. If you know you can afford a loan no bigger than $10,0000, do not agree to go any higher than that, even if they offer.
If it is a car loan you are after, be mindful about which cars will be more to finance than others, especially if you are on a tight budget. A car salesman may try to convince you that you can afford something out of your budget with the “right financing”, but try to stick to your original budget. Getting sucked into a deal that you can’t actually afford will lead to more problems down the road.